Knowledge Centre

Key Statistics

$ Billion*

Total Defence Budget (FY 2019-20)

$ Billion*

Capital Expenditure Allocation (FY 2019-20)

$ Billion*

Revenue Expenditure Allocation (FY 2019-20)


Growth in Expenditure in 2019-20 over 2018-19

Sector Snapshot

India maintains the second largest standing armed forces in the world by size, is the eighth largest spender on defence and the second largest importer of defence equipment (SIPRI, March 2019). Considering the size of Indian Defence Forces, and their modernisation needs, India has maintained a consistent defence spending pattern over the last decade to build defence capability, as also its defence industrial base.

8 – 10 % CAGR

Steady growth


Micro, Small and Medium Enterprises (MSMEs)


FDI permitted with Government approval

Defence Industrial Licences issued till end of FY 2018-19

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Latest News

  • Indo-Israeli UAV Joint Venture in $180 Million Export Deal With Philippines

    An Indian JV, Adani Elbit Advanced Systems may have landed its first export order being part of a $180 million multi-UAV export deal between Israeli Elbit Systems and the Government of Philippines.Elbit is close to signing a $180 million deal for supplying various types of unmanned aerial vehicles (UAVs) to the Philippines army, Globes newspaper reported.

  • Indian Air Force’s Integration of Israeli Derby Missiles on Sukhoi Su-30MKI Hits Russian Roadblock

    With India is planning to arm its Sukhoi Su-30MKI front-line fighter jets with Israeli Derby missiles, the Indian Air Force (IAF) may first have to take permission of the Russian government as per the license technical documentation of the aircraft.As the per documentation, if India wants to integrate any third-country armament in the aircraft, it would need permission of the original equipment manufacturer (OEM).

  • Mysuru Firm Helps IAF Zero-in on AN-32 Wreckage

    It was the crucial role played by a satellite imaging company based in Mysuru which helped track down the location of the wreckage of the Indian Air Force’s ill-fated AN-32 military transport aircraft which mysteriously went missing on June 3 after taking off from Jorhat in Assam.

  • Bharat Dynamics Bags Rs 1,188 Crore Contract from Indian Navy

    Bharat Dynamics Limited (BDL) has signed a contract worth of Rs 1,187.82 crore for supply of Heavy Weight Torpedoes – Varunastra – to the Indian Navy. The contract was inked by NP Diwakar, Director (Technical), BDL and Nidhi Chhibber, Joint Secretary & Acquisition Manager (Maritime & Systems), Ministry of Defence, Govt of India in New Delhi.

  • India Orders 300 R-73 and 400 R-77 Air-to-Air Missiles from Russia

    After the Balakot strike and the dogfight with the Pakistani air force in February, India is looking to increase its stockpile of missiles with the Modi government ordering weaponry worth about $700 million for the Indian Air Force from Russia.

  • Government Finalises Broad Contours of Defence Space Agency

    In a bid to enhance India’s capabilities to fight wars in space, the government has given a go-ahead to a new agency that will develop sophisticated weapon systems and technologies. “The Cabinet Committee on Security (CCS) headed by Prime Minister Narendra Modi has cleared the setting up of this new agency called the Defence Space Research Agency (DSRA), which has been entrusted with the task of creating space warfare weapon systems and technologies,” said Defence Ministry sources.

  • Big Success! DRDO Tests its Future Technology for The Hypersonic Cruise Missile: Becomes Second Country to Do So

    Defence Research and Development Organisation (DRDO) carried out the trials from Dr Abdul Kalam Island in the Bay of Bengal in the morning. According to sources, the new technology was tested and the data generated by radars showed that the trial was a success.

  • India Successfully Test Fires Hypersonic Technology Demonstrator Vehicle (HSTDV)

    India successfully conducted the maiden flight test of indigenously developed unmanned Scramjet demonstration aircraft for hypersonic speed flight from a base off Odisha coast on Wednesday, defence sources said. The aircraft forms an important component of the country's ambitious program for development of a hypersonic cruise missile system, they said.

  • Dassault Aviation Likely to Start Making Rafale Parts in India This Year for Global Clients

    French defence major Dassault Aviation is likely to start manufacturing parts of the Rafale fighter jets at its India facility this year, with the wares destined for global customers, ThePrint has learnt. The Indian facility, a joint venture with Anil Ambani’s Reliance Defence, is located in Nagpur.

  • China Willing to Do Whatever it can to Surpass The U.S. Military

    The Chinese military is reportedly close to achieving technological parity with the United States, just one step in China’s plan to achieve global dominance. According to a report by former deputy defence secretary Robert Work, the Chinese are looking to surpass the United States and keep them trailing behind at all costs.

  • Rafale a Tool for India's Sovereignty, We don't Care About Controversies: France

    France does not care about controversies and just wants to deliver the Rafale jets as it is a tool for better sovereignty for India, French minister of state for Europe and foreign affairs, Jean Baptiste

  • Indian Aerospace Firm Delivers 1000th Electrical Panel for Boeing's Apache

    An Indian aviation firm has achieved dual milestone with Boeing by delivering the 2000th harness for the Osprey and the 1000th electrical panel for the Apache of the global aerospace major, the company said Monday. Boeing India in a statement said, it "remains committed to investing in India's supplier capability and a local workforce across manufacturing engineering services, training and skills-development, to create a world-class aerospace ecosystem in India".

  • Defence Ministry to Extend All Support to Goa Shipyard, says Shripad Naik

    Union Minister of State for Defence Shripad Naik on June 10 said the Centre would provide all support to the Goa Shipyard Limited so that it can complete all its ongoing defence-related projects on time. Naik held a meeting with Goa Shipyard Limited Chairman and Managing Director Commodore (retd) B B Nagpal to review various projects, after the mine counter-measure vessels project to guard India's critical sea lanes hit a dead-end.

  • United Technologies, Raytheon to Create $120 Billion Aerospace and Defense Giant

    United Technologies Corp agreed on Sunday to combine its aerospace business with U.S. contractor Raytheon Co and create a new company worth about $121 billion, in what would be the sector’s biggest ever merger. The deal would reshape the competitive landscape by forming a conglomerate which spans commercial aviation and defense procurement.

  • MoS Defence Shripad Naik To Review GSL's Defence Projects

    Union minister of state for defence Shripad Naik will be visiting Goa Shipyard Limited (GSL) on Monday to review the defence projects sanctioned by the NDA-1 government. He will also discuss future plans of action with GSL officers.

  • Integration of BrahMos Missiles on Sukhoi Jets to be Fast-tracked

    Integration of BrahMos Missiles on Sukhoi Jets to be Fast-tracked Weeks after the Balakot air strikes, the government decided to fast-track integration of the BrahMos supersonic cruise missile on over 40 Sukhoi fighter jets, a closely guarded strategic project aimed at bolstering combat capability of the Indian Air Force, official sources said Sunday.

  • India, US Working on Framework for Sharing of Classified Defence Technology

    India and the US are working on a framework to facilitate transfer of critical military technology and classified information by American defence firms to Indian private sector for joint ventures, authoritative sources said. The framework will also prescribe specific measures for ensuring safety and security of sensitive technology and classified information when shared with Indian firms.

  • US Air Force to Use F-35 Fighters to Simulate Attack by Russian Sukhoi Su-57 and China's Chengdu J-20 Jets

    Russia's muscle-flexing and the rise of Chinese military power in the last few years have pushed the United States of America to not only develop new weapons but also sharpen its war-waging capabilities. In keeping with its strategic aim to be the dominant military power in the world, the USA is getting ready to test its offensive and defensive potential against the Russian and Chinese militaries.

  • U.S Approves Sale of Armed Drones, Offers Missile Defence Systems To India

    US has approved the sale of armed drones to India and has offered integrated air and missile defence systemsThe approval-cum-offer from the US came in the aftermath of the February 14 Pulwama terrorist attack in

  • Defence Minister Rajnath Singh Bats for Made in India Weapon Systems for Indian Armed Forces

    The new defence minister Rajnath Singh on urged the officials in the Ministry of Defence (MoD) to seek indigenous solutions for meeting the forces requirements to the extent possible and took note of the progress made under the Strategic Partnership programme.

Industry Voice

Customer Testimonails
Mr. Baba N. Kalyani President, SIDM and Chairman, Bharat Forge Limited

Make in India is a priority, and defence is a focus sector. The role for SIDM in this context is cut out; it is to focus on indigenisation, R&D, connecting industry, academia and research institutions, in addition to facilitating participation of small and medium scale industries in defence production.

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Customer Testimonails
Mr. Jayant D. Patil Vice President, SIDM and Sr. Exec. Vice President, Whole-Time Director and Member of the Board, Larsen & Toubro Limited

SIDM has been created to act as the single point of contact between the industry and the government. SIDM endeavours to work closely with the government on policy related issues, collaborate with experts from the industry, academia, R&D institutions, and through this, bridge the gap between the armed forces and the industry. SIDM also provides thought leadership, facilitates dialogue, convergences and consensus to resolve policy related issues and aid the flagship Make in India campaign.

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Customer Testimonails
Mr. Atul Punj Member of the Executive Council of SIDM and Chairman, Punj Lloyd Limited

India has the 2nd largest armed force in the world and ranks 5th globally in terms of military spending. At the same time, most of this military spending is exhausted on importing equipment, which must change. Indigenisation is the need of the hour and SIDM is uniquely positioned to push the industry in this direction.

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